Something occurred to me when I was out shopping with the kids this weekend: What ever happened to investing legend Peter Lynch?
Specifically, what became of his radical notion that “ordinary” investors like us can and should find inspiration in the products and services we use in our daily lives?
Maybe it’s an upshot of the whole “market is rigged” controversy. Or maybe it’s because today’s more sophisticated investors have surpassed Lynch’s track record of earning his Fidelity Magellan Fund (MUTF:FMAGX) shareholders 29% per year. For context, that turned every $10,000 you invested in the fund into a quarter of a million dollars during Lynch’s 13 years at the helm.
No, that can’t be it.
To my knowledge, nobody has surpassed Lynch’s astonishing long-term track record of making fortunes for and empowering Main Street investors. I’m not sure anyone ever will. But I, for one, intend to try. I’d like to show you exactly how I plan to do it. In the process I hope to convince you that you can consistently beat the market, realize your financial dreams, and live the life you want.
Here’s how I know you can do it:
I grew up poor, was bullied on my way to school, and came from a broken family. I knew long ago that I wanted a better life, and I also knew it would be up to me to make that happen. Looking back, it’s hard to believe I’ve spent the last 30 years advising people how to invest and make more money.
That’s always been and always will be my mission. I try to empower people through my daily show on Fox Business (Making Money with Charles Payne), through my work running my independent market research firm, and very soon through an exciting new venture with my good friends here at InvestorPlace.
You’ll be hearing much more from me in the coming days and weeks, but I wanted to say a quick hello and get started with a unique investment opportunity I think is in a great spot to make you money.
SYNA: The Home Run Stock That’s Right Before Your Eyes
Look, I don’t care what the doubters say. Peter Lynch was right. When you’re on the lookout for the next great stock idea, sometimes the best place to look is right in front of you. You know, the things you use every day.
Today I’m looking at touchscreens. You may even be reading this article on one right now.
Smartphones, tablets, notebooks and even PCs are built with sleek and simple touchscreens. They are the future. We’ll discuss the makers of these devices in future columns, but today I want to tell you about the leading company that provides the technology these devices need to work.
I’ve liked Synaptics, Incorporated (NASDAQ:SYNA) for quite some time now. In fact, I’ve talked about it four different times on my Fox Business Network show, Making Money with Charles Payne. SYNA had a nice run from $80 to $90 in April, and while it has pulled back a bit from its near-term highs, there is still more money to be made.
Synaptics is No. 1 in touch and fingerprint ID technology, and thanks to last year’s acquisition of chipmaker Renesas SP Drivers, which increased the company’s addressable market by 150%, it is now also No. 1 in integrated circuits for LCD technology. Today, Synaptics offers the industry’s broadest and deepest portfolio of display integration solutions.
Most important, in my mind, is that Synaptics is ahead of the curve with its technology, and that’s what you’re really buying here.
I first recommended SYNA stock on my show last summer when I saw a short squeeze coming (38% of the float was betting against Synaptics), and we got it. (A “short squeeze” occurs when investors who are short the stock are forced to buy shares to return them to their broker, increasing buying pressure that moves the stock higher.)
Eight months later, Synaptics again looks like a winner.
Earnings estimates have gone up for this fiscal year as well as the next fiscal year. Meanwhile, SYNA stock is trading at a price/earnings-to-growth ratio of 0.81 (anything under 1 is considered undervalued) and a reasonable forward price-to-earnings ratio of around 12. Short interest, while down from last summer’s 38%, is still worth noting at around 13%.
Looking at the chart, Synaptics appears to be forming a double-top right now and looks on the verge of re-launching. I expect it to break through $91. When it does, I think those shorts will get squeezed again, and it’s off to the races to $100.
Bottom Line
I do want to point out that SYNA can move around and dip from time to time, especially on significant news items, but I really like the company. If you’re willing and able to ride this one out, I think you can make a whole lot of money here.
In other words, for patient, long-term investors, Synaptics is just the kind of opportunity Peter Lynch would be salivating over. So if you’re like me — addicted to your devices and unable to live without your touchscreens — take a look. It this might be as close a no-brainer as we’re likely to find.
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